Purchasing power parity (PPP) is one of the most important, but empirically controversial theories in international … macroeconomics. Although many researchers believe that some variant of PPP holds in the long run, there are diverse empirical results … regarding the PPP hypothesis. We examine the PPP hypothesis from an alternate point of view: We investigate the possibility of …

This paper examines the long-run validity of purchasing power parity (PPP) for four high-inflation countries. The … test PPP using Johansen's (1988) multivariate cointegration technique. The cointegration tests are conducted with the …, during the recent floating exchange rate period, PPP holds well, at least in a weak form, in high-inflation countries where …

Spanish Abstract: Este trabajo compara diferentes medidas del tipo de cambio real (TCR) para México. La primera parte …) for Mexico. The first part of the paper presents an overview of five different measures of RER, emphasizing the …

bilateral-model based, goods-market specific purchasing power parity (PPP) hypothesis. Under this approach, PPP is embedded in … for five OECD countries using monthly data suggest that the extant finding of insignificant PPP using similar data should …

regarding the validity of purchasing power parity [PPP]. Rather than asking if PPP holds throughout the whole sample period, we … examine if PPP holds sometimes by employing Hamilton-type (1989) Markov regime switching models. There are various reasons … that the persistence of real exchange rates changes over time. When at least one of multiple regimes is stationary, PPP …

to 2003. It offers an overview of the theory of purchasing power parity (PPP), focusing particularly on likely sources of … exchange rates are effectively modelled, and in the case of Ireland and Germany, PPP is found to be valid not only in the long …